Welcome to the latest edition of our Steward Newsletter for nonprofit investors. This issue explores the dynamic world of private markets and hedge funds. These investment vehicles seek to offer nonprofit organizations opportunities to diversify their portfolios and potentially enhance returns. And don’t miss the replay of our 2025 Essential Economic Update, providing an overview of our 2025 Outlook.
Navigating Private Markets:
Key Considerations for Endowment and Foundation Portfolios
Over the past few years, public equity market returns have outpaced private market returns. For the period ending June 30, 2024, the S&P 500 Index has gained 24.6% over the trailing twelve months and 10% annualized over the trailing three years. Comparatively, the U.S. Private Equity Index has gained 7.1% over the trailing twelve months and 6.9% annualized over the trailing three years. However, if looking beyond… Read More
Are Hedge Funds Suitable for My Nonprofit Organization’s Portfolio?
In our 2025 Outlook, “Bridging the Divide” we highlight “The Age of Alpha” in markets due to valuations, concentration and volatility. These factors create a foundation for active management, strategic portfolio construction and a focus on the evaluation of alternative asset classes. With that in mind, it is worth revisiting the role of alternative investments, which are a main source of… Read More
